Stock Markets are Primed for a Crash: One Chart Says it All
A few important things to note beyond the colorful editorial commentary I added to John Hussman’s quality work here.
First, the chart is logarithmic. The y-axis value doubles with each hashmark. Meaning: the current excess is a lot more extreme than it looks at first glance.
Second, the vertical lines indicate ‘dispersions’ which are market conditions Hussman finds are highly-correlated with “steep and rather abrupt market plunges, often representing the first leg of a more extended collapse”.
Notice how rarely they have occured over the past 25 years, and yet they’ve suddenly increased in frequency of late (the most recent took place on Nov 20th).
Adam Taggart and Chris Martenson run PeakProsperity.com and do a great job of it. A damn fine source of information about resilience, preparedness, energy resources, homesteading, and much, much more.
If you have any significant amount of money tied up in equities, it may be time to reconsider the wisdom of that allocation.
Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than the appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.
Yikes! Better call my financial advisor. But of course he always advocates holding.
Took this out of Kazonomic's blog, he is a trader with a good track record, it seems that the cycles of boom and bust have been happening almost exactly with the same timeframe over and over again ever since the begining of the stock market, so I'm no so certain anymore about the possible doom scenario crash in the near future because as you can see in the chart, the "fear" part of the cycle just ended and the next one should only start in 2034-40
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It’s only a matter of time. I read that in the days leading to the Great Depression only 10% of Americans held stock, now that number floats around 55%, mainly due to 401k’s. This next crash will be horrific.
The really interesting thing will be to see if the masses trust crypto enough to shift what they don’t lose into Bitcoin (or other coins) as a hedge.
Any way you slice it it’s going to be very nasty when the house of cards comes tumbling down.